Dennison makes P40.29-million down payment to PXP

By Lenie Lectura – January 9, 2019
from Business Mirror

DENNIS Uy’s Dennison Holdings Corp. made a P40.29-million down payment to PXP Energy Corp. pursuant to their amended subscription agreement signed last December.

On Tuesday, PXP informed the stock exchange that Dennison has paid its 1-percent down payment equivalent to P40,290,000.

The December agreement stated that both parties agreed to reschedule and accelerate the full payment of Dennison’s subscription in 340,000,000 common shares of PXP, at an aggregate subscription price of P4.03 billion, to not later than March 31; and for Dennison to pay the down payment on or before January 7.

Last October, Dennison signed an equity subscription deal with PXP. The deal covered 340 million common shares in the energy-exploration company at P11.85 per share for a total subscription of P4.03 billion.

In the event Dennison fails to pay the entire subscription price on or before March 31, the entire amount of the down payment shall be forfeited in favor of PXP, and the subscription agreement shall be terminated at the option of PXP.

Once the deal is consummated , Dennison is entitled to at least one seat on the PXP board and nominate the vice chairman of the board as well as other rights of a shareholder.

The subscription agreement also grants preferential rights to PXP for it to participate and acquire up to a 49-percent stake in Phoenix Petroleum Corp.’s planned liquefied natural gas (LNG) terminal and a gas-fired power plant project.

Phoenix, also led by Uy, is partnering with China National Offshore Oil Corp. (CNOOC) for the LNG project.

Their joint venture-Tanglawan Philippines LNG-awaits the issuance of a notice to proceed with the LNG project from the Department of Energy.

The planned LNG project may cost at least $1 billion.